Provident Financial Holdings Reports Q1 Fiscal 2027 Net Income of $1.57 Million

Provident Financial Holdings, Inc. reported financial results for the first quarter ended September 30, 2026. The company reported net income of $1.57 million, or $0.25 per diluted share, for the quarter. This figure represents a 28% decrease from the $2.18 million, or $0.35 per diluted share, reported in the fourth quarter of fiscal 2026. On a year-over-year basis, net income decreased by 6% compared to the $1.68 million, or $0.25 per diluted share, reported in the comparable period last year.

The decrease in earnings compared to the sequential quarter was primarily driven by a $777,000 provision for credit losses, in contrast to a $95,000 recovery in the prior quarter. This was partly offset by a $459,000 increase in net interest income and a $130,000 decrease in non-interest expenses. The decrease from the prior year was due largely to the $777,000 provision for credit losses, which contrasted with a $626,000 recovery in the same period last year.

Net interest income increased by $840,000, or 9%, to $9.77 million for the quarter ended September 30, 2026, compared to $8.93 million in the same quarter last year. This increase was attributed to a $581,000 rise in income from interest-earning assets and a $259,000 decrease in funding costs. The net interest margin expanded to 3.32%, an increase of 32 basis points from 3.00% in the prior-year period.

Loans held for investment totaled $1.04 billion at September 30, 2026, a slight increase from $1.03 billion at June 30, 2026. Total deposits stood at $897.7 million at September 30, 2026, down 1% from $910.4 million at the end of the prior quarter. The allowance for credit losses increased to $6.59 million at September 30, 2026, from $5.85 million at June 30, 2026. Non-performing assets to total assets remained stable at 0.04% for both periods.

Non-interest income decreased by $9,000, or 1%, to $804,000 in the first quarter of fiscal 2027, compared to $813,000 in the same period last year. Non-interest expense decreased by $15,000 to $7.62 million. The company’s efficiency ratio improved to 72% in the first quarter of fiscal 2027 from 78% in the same quarter last year.

Return on average assets was 0.52% for the first quarter of fiscal 2027, compared to 0.73% in the fourth quarter of fiscal 2026. Return on average stockholders' equity was 4.93% for the first quarter of fiscal 2027, compared to 6.85% in the fourth quarter of fiscal 2026.